PNC Reports Net Income of $1.5B in Third Quarter
PITTSBURGH, Pa. – PNC Financial Services Group on Tuesday reported $1.5 billion in net income and $5.4 billion in total revenue during the third quarter.
Among some of the highlights of the third quarter was a 3% increase in net interest income compared with the second quarter, a 10% increase in fees and a total revenue increase of $21 million.
Additionally, PNC reported stable average loans, a 1% increase in deposits and securities and a 10-cent increase in diluted earnings per share, with a 9% increase in tangible book value.
“Our results for the third quarter demonstrate PNC’s continued strong momentum across the franchise,” Bill Demchak, PNC chairman and CEO, said in a statement released with the results from the quarter that ended Sept. 30.
Net income rose by $28 million for the quarter but is down $65 million from a year ago.
During the third quarter, retail banking earnings decreased by 32%, which PNC reports was primarily driven by a 50% decrease in noninterest income, which reflects impacts from the VISA exchange program that occurred in the second quarter. Corporate and institutional banking earnings increased 14%, while asset management group earnings increased 1%.
Here are key financial ratios for the quarters ending Sept. 30, June 30 and Sept. 30, 2023:
- Return on average assets: 1.05%, 1.05%, 1.12%.
- Return on average common equity: 11.72%, 12.16%, 13.65%.
- Net interest margin: 2.64%, 2.60%, 2.71%.
- Efficiency: 61%, 62%, 62%.
The PNC Board of Directors on Oct. 3 declared a quarterly cash dividend of $1.60 per share, which will be paid Nov. 5 to shareholders of record at the close of business Oct. 16.
The full PNC report can be viewed HERE.
Published by The Business Journal, Youngstown, Ohio.
